EpiPen Maker Settles Government Lawsuit for $465 Million

The maker of EpiPen has agreed to pay the federal government $465 million to settle claims that it overbilled Medicaid for a decade.

This is not the first settlement that Mylan Inc. has made with the federal government: In 2009, the company did the same in a suit that said Mylan had allegedly overcharged the government for its severe allergy attack rescue device, the Associated Press reported Thursday.

The new case claimed Mylan paid rebates that were too low to Medicaid, by classifying its brand name product as a generic, which requires lower rebates, the newspaper said.

The practice came to the attention of the U.S. Justice Department after Sanofi Inc., which makes a rival product to the EpiPen, alerted government officials, the AP reported.

In 2015, Sanofi recalled nearly 500,000 of its devices from the market, because some did not administer the correct dose to reverse a severe allergic attack, the newspaper said.

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